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1. Company Snapshot

1.a. Company Description

Boot Barn Holdings, Inc., a lifestyle retail chain, operates specialty retail stores in the United States.The company's specialty retail stores offer western and work-related footwear, apparel, and accessories for men, women, and kids.It offers boots, shirts, jackets, hats, belts and belt buckles, handbags, western-style jewelry, rugged footwear, outerwear, overalls, denim, and flame-resistant and high-visibility clothing.


The company also provides gifts and home merchandise.As of May 10, 2022, it operated 304 stores in 38 states.The company also sells its products through e-commerce websites, including bootbarn.com; sheplers.com; and countryoutfitter.com.


The company was formerly known as WW Top Investment Corporation and changed its name to Boot Barn Holdings, Inc.in June 2014.Boot Barn Holdings, Inc.


was founded in 1978 and is based in Irvine, California.

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1.b. Last Insights on BOOT

Boot Barn Holdings, Inc.'s recent performance faced challenges due to tempered expectations. Despite a 16% revenue growth and 5.7% same-store sales increase in Q3, some investors exercised caution. WCM Investment Management LLC reduced its stake by 23% in the previous quarter. Conversely, Fieldview Capital Management LLC and Bell Asset Management Ltd increased their holdings. The company's growth prospects and expanding total addressable market (TAM) to $58B, driven by store growth, exclusive brands, and e-commerce, could support its valuation. (Source: MarketBeat Ratings: "Moderate Buy")

1.c. Company Highlights

2. Boot Barn's Q3 Earnings: A Strong Performance Across the Board

Boot Barn reported a robust third quarter, with revenue increasing 16% to $706 million, driven by a 5.7% same-store sales growth and the addition of new stores. The company's merchandise margin rate expanded by 110 basis points, thanks to buying economies of scale, supply chain efficiencies, and growth in exclusive brands. Earnings per share (EPS) came in at $2.79, in line with estimates. Gross profit increased 18% to $281 million, with a gross profit rate of 39.9%. SG&A expenses were $166 million, or 23.6% of sales, compared to $139 million, or 22.9% of sales, in the prior year period.

Publication Date: Feb -15

📋 Highlights
  • Revenue Growth: Q3 revenue rose 16% to $706 million, driven by new store openings and 5.7% same-store sales growth.
  • New Store Expansion: Opened 25 new stores in Q3, totaling 514 stores, with new stores achieving $3.2 million in first-year sales and 2-year payback.
  • Omnichannel Momentum: Online sales grew 19.6% year-over-year, reflecting strong digital adoption and customer engagement.
  • Merchandise Margin Expansion: Margins increased 110 basis points, aided by exclusive brand growth (240 bps) and supply chain efficiencies.
  • Full-Year Guidance Raised: Forecasted FY 2026 sales of $2.25 billion (18% YoY growth), with 7% same-store sales and 15% e-commerce growth expected.

Operational Highlights

The company opened a record 25 stores in the third quarter, ending the period with 514 stores. Average annual sales for new stores are $3.2 million in their first full year of operation, with payback in less than two years. Same-store sales grew 5.7%, driven by low single-digit increases in both basket and transactions. Online comp sales grew 19.6%, demonstrating the company's strong omnichannel capabilities.

Guidance and Outlook

Boot Barn raised its full-year guidance, expecting total sales to be $2.25 billion, representing growth of 18% over fiscal 2025. The company expects same-store sales to increase 7%, with a retail store same-store sales increase of 6% and e-commerce same-store sales growth of 15%. For the fourth quarter, the company expects total sales to be $535 million and a consolidated same-store sales increase of 5%.

Valuation and Growth Prospects

With a P/E Ratio of 26.16 and an expected revenue growth rate of 13.9% next year, Boot Barn's valuation appears reasonable. The company's ROE of 18.28% and ROIC of 10.7% indicate a strong ability to generate returns on equity and invested capital. As the company continues to expand its store count and drive same-store sales growth, investors can expect sustained revenue and earnings growth. As Jim Watkins noted, "We're on track to grow our earnings per share 25% this year and expand our EBIT margin to 90 basis points at the high end of the guide."

Conclusion on Valuation Metrics

Boot Barn's current valuation metrics, including a P/S Ratio of 2.64 and an EV/EBITDA of 16.93, suggest that the company's stock is fairly valued. However, with a strong growth outlook and a solid track record of execution, the company may be able to sustain its growth momentum, making it an attractive investment opportunity for those looking for exposure to the retail sector.

3. NewsRoom

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Boot Barn (BOOT) is an Incredible Growth Stock: 3 Reasons Why

Mar -09

Source: zacks.com

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4 Stocks With Strong Interest Coverage Ratios Investors Should Buy

Mar -09

Source: zacks.com

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Fieldview Capital Management LLC Boosts Stock Holdings in Boot Barn Holdings, Inc. $BOOT

Mar -09

Source: defenseworld.net

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Bell Asset Management Ltd Makes New $2.73 Million Investment in Boot Barn Holdings, Inc. $BOOT

Mar -09

Source: defenseworld.net

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4,946 Shares in Boot Barn Holdings, Inc. $BOOT Bought by Diversify Wealth Management LLC

Mar -01

Source: defenseworld.net

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3 Big Winners from the 2025 Q4 Earnings Cycle: CAH, BOOT, PLTR

Feb -27

Source: zacks.com

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Boot Barn (BOOT) Upgraded to Strong Buy: Here's What You Should Know

Feb -26

Source: zacks.com

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Is Boot Barn (BOOT) Outperforming Other Retail-Wholesale Stocks This Year?

Feb -23

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.44%)

6. Segments

Stores

Expected Growth: 5%

Boot Barn Holdings, Inc.'s 5% growth is driven by increasing demand for western and work-related apparel, expansion into new markets, and strategic store openings. Additionally, the company's focus on omnichannel retailing, effective inventory management, and strong brand recognition contribute to its growth momentum.

E-commerce

Expected Growth: 9%

Boot Barn Holdings, Inc.'s 9% e-commerce growth is driven by increasing online penetration, effective digital marketing, and a strong brand presence. Additionally, the company's investments in omnichannel capabilities, such as buy-online-pickup-in-store (BOPIS) and curbside pickup, have enhanced the customer experience, leading to higher online sales and loyalty.

7. Detailed Products

Western and Work Boots

High-quality boots designed for durability and comfort, suitable for work, outdoor activities, and western-inspired fashion

Casual Boots and Shoes

Stylish and comfortable footwear for everyday wear, including sneakers, sandals, and casual boots

Work Apparel and Accessories

Durable and functional clothing and accessories for work, outdoor activities, and western-inspired fashion

Western-inspired Apparel

Fashionable clothing and accessories inspired by western heritage, including shirts, jeans, and hats

Gifts and Accessories

Unique gifts and accessories, such as belt buckles, jewelry, and home decor, inspired by western heritage

8. Boot Barn Holdings, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Boot Barn Holdings, Inc. is medium due to the presence of alternative products and services in the market. While there are some substitutes available, they are not a significant threat to the company's business.

Bargaining Power Of Customers

The bargaining power of customers for Boot Barn Holdings, Inc. is low due to the company's strong brand presence and customer loyalty. Customers have limited bargaining power, and the company has a strong pricing strategy.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Boot Barn Holdings, Inc. is medium due to the presence of multiple suppliers in the market. While suppliers have some bargaining power, the company's strong relationships and contracts mitigate this risk.

Threat Of New Entrants

The threat of new entrants for Boot Barn Holdings, Inc. is low due to the high barriers to entry in the market. New entrants would require significant investment and resources to compete with the company's established brand and operations.

Intensity Of Rivalry

The intensity of rivalry for Boot Barn Holdings, Inc. is high due to the competitive nature of the market. The company operates in a highly competitive industry, and rivalry among competitors is intense.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 33.09%
Debt Cost 3.95%
Equity Weight 66.91%
Equity Cost 14.70%
WACC 11.14%
Leverage 49.46%

11. Quality Control: Boot Barn Holdings, Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Gap

A-Score: 5.1/10

Value: 6.3

Growth: 4.6

Quality: 5.1

Yield: 7.0

Momentum: 6.0

Volatility: 1.7

1-Year Total Return ->

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Stock-Card
Urban Outfitters

A-Score: 5.0/10

Value: 5.4

Growth: 6.8

Quality: 6.1

Yield: 0.0

Momentum: 8.0

Volatility: 3.7

1-Year Total Return ->

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Stock-Card
Boot Barn

A-Score: 4.8/10

Value: 2.3

Growth: 7.9

Quality: 6.0

Yield: 0.0

Momentum: 8.0

Volatility: 4.3

1-Year Total Return ->

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Stock-Card
American Eagle Outfitters

A-Score: 4.2/10

Value: 4.7

Growth: 4.4

Quality: 4.4

Yield: 5.0

Momentum: 4.5

Volatility: 2.0

1-Year Total Return ->

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Stock-Card
Burlington Stores

A-Score: 4.1/10

Value: 3.0

Growth: 5.9

Quality: 4.7

Yield: 0.0

Momentum: 6.0

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
Abercrombie & Fitch

A-Score: 4.0/10

Value: 5.9

Growth: 8.3

Quality: 6.8

Yield: 0.0

Momentum: 0.5

Volatility: 2.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

164.11$

Current Price

164.11$

Potential

-0.00%

Expected Cash-Flows